Record Low Mortgage Rates

CounsellorsTitle.net

July 23rd, 2020

Title Wise

The New Jersey Real Estate News You Can Use

We continue to expect to see our real estate markets escalate as demand for homes fueled by record low interest rates drives buyers deeper into our markets. So far builders are unable to meet this extraordinary demand.

Please feel free to email me at ralph@counsellorstitle.com

if you have any questions or would like to follow up on any of this edition's articles.

Ralph Aponte

732.914.1400

Mortgage Rates Fall Below 3%

For the first time in history mortgage rates have gone to below 3%.

This is the first time that this level has been achieved since 1971 when Freddie Mac began recording such data.

According to Freddie Mac today (Thursday), the average rate for a 30-year fixed mortgage fell to 2.98%. This represents a decrease from the 3.03% reported last week.

This trend is not new, since the rates have been slowly but consistently going lower during the Chinese pandemic.

Concern certainly clouds the economic horizon with respect to the economy as it slowly but surely reopens.

One possible reason for the drop in mortgage rates can be attributed to the historic shortage of available homes for sale nationwide.

In many cases, especially in such states has New Jersey, where Counsellors Title provides title insurance services, the months supply of single-family homes in the state is just 3.7 months.

As of May 2020 there were just 24,736 on the market. This compares to 42,176 single-family homes on the market in the state for May 2019, a 41.4% decline.

According to some reports, why some buyers have stepped-back a bit is the concern over the economic recovery moving through this health crisis in America.

The drop in rates translates into approximately $100 off a monthly mortgage payment for current homeowners and homebuyers.

The other concern about lower mortgage rates is that buyers may be willing to spend more to buy a house which would have otherwise been out of their price range.

Currently the refinance market has increased its share of total mortgage activity, getting 64.2% of total applications, climbing from the 60.1% from the prior week.

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WE ARE HIRING

Counsellors Title has an opening for an experienced Title Officer. The job calls for the candidate to work independently, referring only unusual and complex matters to supervisors or title support. The candidate should be familiar with all aspects of title work, and industry terminology, and be able to multi-task, properly price and appropriate schedule of fees and charges. As a Title Officer, the candidate must possess excellent communication skills, strong customer service, attention to detail. Counsellors Title Agency is committed to diversity and inclusion. We are an equal opportunity employer. Benefits: health insurance, 401K with a match, get paid weekly, flexible spending accounts. Fax your resume to 732.914.8898 or email Ralph@counsellorstitle.com.

HMI Index Jumps to 72

The National Association of Home Builders published their most recent home builder sentiment report, indicating that overall home builder sentiment shot up by 14 points to 72 in July.

All three components of the HMI index increased:

■ Current sales increased 16 points to 69

■ Sales expectation for the next six months rose seven points to 75

■ Buyer traffic increased 15 points to 58

The 72 reported for home builder sentiment represents the same level that it had been prior to the pandemic in March. Anything less than 50 is considered negative.

According to the chairman of the NAHB, Chuck Fowke, demand for new construction continues to remain very strong. What appears to be atypical is the demand being experienced in the Northeast, and not just the Midwest.

The low interest rates are of course a big incentive but the scarcity of available homes makes this a very attractive market for homebuilding.

The low mortgage rates are clearly giving buyers more purchasing power, and fear concerning the restart of the economy is not being felt in this current economy.

According to the builders, mortgage applications for new homes have skyrocketed up over 50% in June on a year-over-year basis.

Problems or the obstacles being faced by homebuilders comes in the shortage of skilled labor and the bump in lumber prices.

According to the report, lumber prices are at a two-year high, and other building materials are also rising. As new home demand improves in low-density markets, builders are seeking out availability of properties to purchase. It even seems that telework is becoming a bigger factor in terms of the kind of home that people believe that they will need to have in the post-pandemic economy.

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COVID Makes Its Impact

The United States Bureau of Economic Analysis issued its report on the Gross Domestic Product (GDP) by State for the 1st Quarter of 2020. The report, which covers January through March, is the first report to show the impact of the COVID-19 pandemic on the U.S. economy.

Top 5 sectors that have contributed to the decline of real GDP nationally:

Accommodations and food service (down 26.8%);
Finance and insurance (down 9%);
Health care and social assistance (down 7.8%);
Arts, entertainment and recreation (down 34.7%);
Agriculture, forestry, fishing and hunting (up 15.5%).

"New Jersey's output in the first quarter was sadly, more or less in line with the nation. Our real GDP fell at a 5.5% annual rate; a bit lower than the national decline of 5.0%, but quite different than New York's nation-leading 8.2%. Our performance was a bit softer than the nation's simply because we shut down earlier than most, so sectors such as real estate (which is largely estimated from sales transactions) and wholesale and retail trade fell more than elsewhere, and unlike some states in the Great Plains there was no support from agriculture. New York was much weaker due to a collapse in finance and construction," stated Dr. Charles Steindel, former Chief Economist of the State of New Jersey.

New Jersey's decline of 5.5% ranked 35th in the U.S. in GDP. New York showed the largest decline of all 50 states, contracting 8.2% due to the decline in its hospitality industry.

-- Jon Gordon

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A.S.A.P. Attorney Settlement Assistance Program

Our real estate secretarial services are able to assist you in every

aspect of the sale, purchase, refinance or loan closing process. We will directly communicate with all the parties involved in the transaction and coordinate and obtain all the items necessary to bring the matter to closing.

Our ASAP services can be individually customized to fit your needs. These services include:

Documentation Preparation
Disbursement of Funds
Attendance at Closing
HUD Preparation or
Post-Closing Matters

Our Commitment to Excellence

Counsellors Title Agency wants to thank you for the opportunity to work with you and your clients to grow your business. Please feel free to click the link above or here to leave us a review on Google. We appreciate your business.

Careers @ Counsellors

Sales: Leading NJ title insurance agency seeks experienced licensed salespersons to help expand its market share throughout the entire state. Benefits include health insurance, 401k with an employer match, flexible spending account, expense account, & marketing support. Send resumes by fax: 732-914-8898 or ralph@counsellorstitle.com

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Free Online Title Insurance Calculator

Counsellors Title Agency announced its updated Title Calculator for New Jersey home purchases & refinances at: Title Calculator

Loan officers, real estate agents and home buyers can find out how

much title insurance will cost for purchases made in New Jersey.

Easy-To-Use Functionality
This online tool includes many of the endorsements involved in calculating the cost of a title policy in New Jersey. CTA's Title Calculator is a great tool for real estate salespersons, loan officers, attorneys and those who are buying or refinancing their home.

It calculates the cost of title insurance based upon the purchase price of the home, the loan amount, and the various endorsements that can accompany the loan. The calculator provides the user the scalability of selecting the various endorsements involved in the transaction.

Counsellors Title Closing Services for Attorneys

Counsellors Title provides its Attorney Settlement Assistance Program [ASAP] with the real estate attorney in mind.

The Counsellors ASAP program offers secretarial services to assist in the process of a sale, purchase, refinance or loan closing.

Counsellors will even communicate directly with all the parties involved in the transaction to coordinate and obtain all the items necessary to assist in the close.

ASAP includes:

Documentation Preparation
Disbursement of Funds
Attendance at Closing
HUD Preparation or
Post-Closing Matters

For more information about the attorney services provided by Counsellors Title call our home office: 732.914.1400 or email us at info@counsellorstitle.com.